Vitalik Buterin advocates reducing solo stake requirement for Ethereum

Ethereum co-founder Vitalik Buterin has acknowledged the significance of reducing the minimum amount of Ether required by cryptocurrency investors to earn passive income through solo staking.

During a community discussion on October 3, Buterin voiced support for the idea of lowering the minimum Ether (ETH) deposit requirement for solo stakers, who operate full nodes independently without relying on third-party services or staking pools. The current 32 ETH lock-up requirement acts as a barrier to wider participation.

In September, Buterin emphasized the role of solo stakeholders in enhancing the security and decentralization of Ethereum at the Ethereum Singapore 2024 event. He highlighted the importance of solo stakers in providing an additional layer of defense against 51% attacks.

To foster a larger solo staking community, Buterin proposed ideas to increase bandwidth requirements while reducing the minimum stake deposit to 16 or 24 ETH. However, concerns were raised by an Ethereum developer that varying bandwidth availability based on physical location could hinder this goal.

Buterin expressed confidence that his proposed workaround could make solo staking more accessible and scalable. He suggested that as technology progresses, the minimum deposit requirement could potentially decrease to 1 ETH, encouraging greater participation in Ethereum’s staking process.

Recently, Buterin took a stance against Ethereum projects claiming to be layer-2 networks purely on technical grounds. He emphasized the need for all Ethereum layers to reach ‘phase 1’ by the end of 2024, stating that failure to do so may disqualify them from being classified as Tier 2 projects.

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